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Committee Page 1 of 20 Page 1 of 20 Report to the Future Melbourne (Finance and Governance) Agenda item 6.4 Committee Proposed Ticket Price Increase for Melbourne International Flower and 16 October 2018 Garden Show (MIFGS) Presenter: Katrina McKenzie, Director City Economy and Activation Purpose and background 1. The purpose of this report is for the Future Melbourne Committee (FMC) to consider a proposed increase to the maximum daily charge for the Melbourne International Flower and Garden Show (MIFGS) held in Carlton Gardens. 2. The Melbourne Parks and Gardens (Joint Trustee Reserves) Regulations 1994 (Regulations) sets out conditions for using Carlton Gardens for a horticultural exhibition (Attachment 2). The Regulations are made under section 13 of the Crown Land (Reserves) Act 1978 by the Minister for Energy, Environment and Climate Change and Melbourne City Council as trustee, with the approval of the Governor in Council. 3. The horticultural exhibition referred to in the Regulations is MIFGS, owned by the Flower and Garden Show Limited (FGSL). 4. The Regulations currently stipulate, amongst other things, that the maximum daily charge for a horticultural exhibition in Carlton Gardens cannot exceed $29.90 per person. The process to amend the Regulations first requires a Council resolution in support followed by, amongst other steps, approval from the Governor in Council and for the new Regulations to then be published in the Victoria Government Gazette. 5. Council last resolved to increase the maximum daily charge from $20 to $30 per person (over a period of time) in May 2011 (Attachment 3). 6. FGSL have approached management wanting to amend the Regulations by increasing the maximum daily charge from $29.90 to $40, to allow FGSL to gradually increase the ticket price over the next five years. This time period reflects the balance of the existing licence agreement between FGSL and Council which outlines the robust terms and conditions for staging MIFGS in Carlton Gardens on an annual basis. Key issues 7. MIFGS ticket prices have not increased since 2017. Whilst the event does seek sponsorship support and also receives some exhibitor revenue, it is not enough to cover the increasing costs to deliver the event and ticket revenue currently represents 70 per cent of the event’s income. MIFGS does not receive any funding from CoM, as it does not currently meet the criteria of any of the established funding or sponsorship programs. 8. The costs to deliver MIFGS have increased significantly in recent years, and at a greater rate than ticket revenue. For 2019, FGSL expects event expenses to increase by approximately $180,000. Similar increases occurred in 2018, but ticket prices remained unchanged. The increased costs are a combination of: increased venue rental for the Royal Exhibition Building; increased Council fees for the licence, reserved parking, engineering services, and consultancy requirements; and general operational costs such as infrastructure, advertising, displays, and signage. 9. FGSL have confirmed that any additional revenue derived from ticket sales will go directly to offsetting these increased costs, as well as enhancing the overall look and feel of the five-day event. 10. The proposed increase to the maximum daily charge for MIFGS is relatively favourable when compared with similar events and tourism attractions; as such, management supports this request. Recommendation from management 11. That the Future Melbourne Committee: 11.1. Approves the request from Flower and Garden Show Limited to increase the maximum daily charge for the Melbourne International Flower and Garden Show to $40 (to be increased gradually over the course of future events). 1 Page 2 of 20 11.2. Authorises management to work with Flower and Garden Show Limited to seek approval from the State Government for the necessary changes to the Melbourne Parks and Gardens (Joint Trustee Reserves) Regulations 1994. Attachments: 1. Supporting Attachment 2. Melbourne Parks and Gardens (Joint Trustee Reserves) Regulations 1994 3. Future Melbourne Committee 17 May 2011 confirmed meeting minutes 2 Page 3 of 20 Attachment 1 Agenda item 6.4 Future Melbourne Committee 16 October 2018 Supporting Attachment Legal 1. The purposes for which the Carlton Gardens may be used include public recreation (pursuant to the Order in Council of 1 February 1864) and horticultural exhibitions (pursuant to regulation 19 of the Regulations). The Carlton Gardens are managed by Council as the Committee of Management. As the Committee of Management, Council is able to license the Carlton Gardens in accordance with the provisions of the Crown Land (Reserves) Act 1978 and the Regulations, which it has done through to 2023. The Regulations prescribe the entry fee payable by the public for the MIFGS. Finance 2. Under the existing licence between Council and FGSL, fees are paid to Council by FGSL in the form of: 2.1. An annual licence fee of $145,000 excluding GST (increasing each year by CPI). 2.2. An annual public projects contribution of $35,000 excluding GST (increasing each year by CPI). and 2.3. An annual refundable bond of $250,000 excluding GST. 3. The proposed increase to the maximum daily entry fee will not impact the licence fees outlined above, and it will not generate any additional revenue for Council. Conflict of interest 4. No member of Council staff, or other person engaged under a contract, involved in advising on or preparing this report has declared a direct or indirect interest in relation to the matter of the report. Occupational Health and Safety 5. In developing this proposal, no Occupational Health and Safety issues or opportunities have been identified. Stakeholder consultation 6. Stakeholder consultation was not undertaken in preparing this report. Relation to Council policy 7. Council policies that relate to this report include Council Plan 2017-21 and the Future Melbourne 2026 Plan. Environmental sustainability 8. In 2018, a new six-year licence was established with FGSL, outlining specific requirements associated with the event management of MIFGS in Carlton Gardens. This includes the development and provision of a biennial soil compaction report, an annual independent Arboriculture Assessment and Report, garden management and reinstatement specifications, and specific event operations such as waste management. 1 Page 4 of 20 Attachment 2 Agenda item 6.4 Future Melbourne Committee 16 October 2018 MELBOURNE PARKS AND GARDENS (JOINT TRUSTEE RESERVES) REGULATIONS 1994 Title 1. These Regulations may be cited as the “Melbourne Parks and Gardens (Joint Trustee Reserves) Regulations 1994”. Objectives 2. The objectives of these Regulations are to provide for the care, protection and management of the Reserves listed in Regulation 5 and Schedule 1. Authorising provision: 3. These Regulations are made under section 13 of the Crown Land (Reserves) Act 1978, by the Minister for Conservation and Environment and the Melbourne City Council as trustee, with the approval of the Governor in Council. Commencement 4. These Regulations come into operation on the day on which they are published in the Victoria Government Gazette. Application 5. Except as otherwise provided, these Regulations apply to each of the Crown Lands in the City of Melbourne known as – Alexandra Park Powlett Reserve, Fawkner Park Flemington and Kensington Park, North Melbourne Recreation Reserve Flinders Park1, Princes Park Argyle Square, Yarra Park2, Curtain Square3, Darling Square Carlton Gardens, Lincoln Square Fitzroy Gardens, Macarthur Square Flagstaff Gardens, Murchinson Square, and University Square – All which have been – (a) permanently reserved by Orders in Council under section 4 of the Act or corresponding previous enactments for the purposes of public parks and gardens or for the recreation, convenience or amusement of the people; and 1 No parkland remains in Flinders Park 2 Balance of Crown Grant revoked by the Melbourne Cricket Ground and Yarra Park Amendment Act 2009. 3 Curtain Square is now located in the Yarra City Council 1 Page 5 of 20 (b) by the Crown grants listed in Schedule 1 opposite the names by which the lands are respectively known, vested jointly in the Minister for Conservation and Environment and the Melbourne City Council – and of which the Melbourne City Council has in each case been appointed a Committee of Management by the Orders in Council listed in Schedule 1 opposite the names by which and lands are respectively known. Revocation: 6. All previous Regulations made for and with respect of a Reserve listed in Regulation 5 and Schedule 1 are revoked. Definitions: 7. In these Regulations – “animal” includes every species of quadruped and every species of bird whether in a natural or domestic state. “Act” means the Crown Land (Reserves) Act 1978. “Appointed Officer” means any persons appointed in writing by the Committee of Management as an appointed officer for the purpose of these Regulations and (except for the purpose of receipt of any fees or the grant, variation or revocation of any permit, licence or lease) also includes any member of the police force and any person appointed or deemed to be appointed an authorised officer under section 83 of the Conservation Forests and Lands Act 1987. “Committee” means the Melbourne City Council appointed under the Act as a Committee of Management of each of the Reserves. “Reserve” means any one of the Reserves listed in Regulation 5 and Schedule 1. “sell” means – (a) sell, barter or exchange; (b) agree to sell, barter or exchange; (c) offer or expose for sale, barter or exchange; (d) send, forward, deliver or receive for or on sale or for barter or exchange; (e) keep or have in possession for sale, barter or exchange; 2 Page 6 of 20 (f) attempt any such act or thing; and “sale” and “sold” have a corresponding meaning. “toy vehicle” means a vehicle designed to be propelled by human power, and includes a bicycle, tricycle, scooter, skateboard, roller skates, inline skates or similar devices, but does not include a wheelchair.
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